Should I Rent or Buy a Home?

Home ownership is touted as the American Dream. However for some it turned into the American nightmare. You can bet these people never did a complete pro/con analysis.

Mind you, the factors you are about to read aren’t the end all be all. They are merely a start to help you frame your thoughts about buying or renting.

Let’s start with the advantages of renting. These include a monthly cost less than a mortgage. You can usually move more easily should you decide to or need to change locations. Maintenance is generally the responsibility of the apartment complex management meaning the tenant has no responsibility for repairs.

Advantages seem to breed disadvantages so let’s discuss them. For many people the lack of a tax benefit is a big deal. A tenant has no investment in, or from, the property which means no equity is building. The rent payment can increase frequently and the possibility of eviction is very real.

Phew! That was almost enough to scare a person into buying without looking at its pros and cons.

The advantage of buying includes a greater stability factor. The putting down of roots so to speak. It usually is a very good investment as it builds equity without active homeowner participation and provides tax breaks not available to renters. First homes usually lead to an upgrade. You get to choose the décor and space arrangement. Owning also gives a greater sense of security.

The disadvantages can be summed up by saying, you, the owner are responsible for everything. You are responsible to pay the property taxes, maintain the interior and exterior, make necessary repairs, sometimes you can’t sell your home when you want to, payment on some mortgage types can increase, property taxes can and do increase, home owner association dues, if applicable, can and do increase, cash is tied up, and you face the possibility of foreclosure.

After I wrote that last paragraph I almost sold my house <g>. Like I said above this isn’t the end all, be all as there are factors that are unique to you and your situation. Factor them into the above lists to get an accurate picture of your situation/position at this moment in time.

When everything is said and done, if you’ve done the research and preparation you’ll know if renting, or buying, is right for you. Most of all don’t let other people do your thinking for you. It is your life, your future and, maybe most importantly, your money.